Pros & Cons of Asset Mgt vs Inv. Banking (Portfolio mgt vs trading)

[LouisBachelierS]

Hello friends,

I want to weigh between different career paths.

So far I have only seen the AM side.

I think (i'm probably wrong, stating stereotypes...) that:

AM has easier hours, pays less and is generally less exciting. Trading seems to be a more fast paced environment, probably with more exhausting days (I would not say there is more stress as you also dream about your portfolios in the middle of your holidays in AM...)

whats your opinon, your advices ?

 

[Swayum]

Trading at an investment bank is not about investing money to generate a return. It's not about prop trading either (i.e. betting that the price of gold will go up). It's about market making - a client wants to buy 5 year bonds, what price will you quote them? Doesn't matter if you don't want to have 5 year bonds on your book (long or short) - your client wants to trade so you have to make a price. Once you've made them a price and they've traded with you, your goal now is to hedge that risk on your book instantly so that you're not affected as the price of the bond rises/falls (e.g. if they just bought 5 year bonds, maybe you could get into a swap to hedge out some of the risk).

I think the AM side is more interesting. I thought AM had similar hours and paid more depending on how well your team performs?